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Recession of the world economy is inevitable without energy exports from Russia


Mart, 28 2022
watermark Economic news

Experts from the Federal Reserve Bank of Dallas said that the global economy will inevitably face a recession if Russia decides to stop exporting hydrocarbons.


They drew a parallel with the global recession of 1991 caused by a problem with oil supplies, but called it only a short-term recession in the United States, which lasted less than a year. The expected recession may last much longer, analysts believe. 


Many economists and investors share the view that rapid inflation significantly increases the chances of a global recession. German Chancellor Olaf Scholz also warned that an immediate ban on Russian energy imports would cause an economic downturn in Germany and across Europe. 


Nevertheless, the country is ready to eventually stop its energy dependence on Russia, but a sharp break in all ties will not bring anything good to the German economy. Scholz acknowledged that in this case, hundreds of thousands of jobs would be at risk, and entire industries would be on the verge.


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